Cryptocurrency exchange OKX has recently released a clarification about their policy in regards to shell tokens, stating that OKX does not permit buying or selling these types of tokens. This alert comes on the back of a series of WeChat conversations where an individual incredibly requested to buy shell tokens, presenting an enormously large budget of $1.5 million.

It is important to note that unlike regular stocks or cryptocurrency tokens, shell tokens do not have any underlying business activities, assets, or market value. This type of token may have initially attracted initial traction to make it through the listing requirements on a given exchange, however, its development may stop at some point in the future, requiring manual removal from the exchange platform.

Furthermore, there have been warnings that purchasing shell tokens can lead to potential market manipulation. OKX’s founder, Haifeng stated that not only does the exchange monitor listed tokens, but any token projects or actions that may risk its customer’s security and operations shall result in the delisting of said token from the exchange.

With the popularization of cryptocurrencies, it is key for crypto-users to be aware of the different types of tokens that exist within the cryptosphere and understand their particular risks. For instance, shell tokens pose high risks since some of their related operations may be illegal. Additionally, buying shell tokens may be perceived as an attempt of market manipulation, potentially leading to users breaking the law.

OKX’s message is clear, as well as its founder’s: don’t be evil. All projects that present any signs of development stoppage or malicious behavior will be delisted according to OKX’s listing agreement. Cryptocurrency users should always be aware of their actions and their own risks when interacting with any type of token on the market. Moreover, they should conduct due diligence into each project they wish to invest in.



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